Finance Minister Dr Nigel Clarke has provided a consolidated update on the investigation into the fraud at Stocks and Securities Limited (SSL), revealing that to date, none of the 200 affected accounts have seen any recovery of the losses incurred due to the fraudulent activities.
The extent of the fraud exceeds $3 billion in value.
Dr Clarke said any recovery of the funds lost cannot start until after a criminal conviction.
“Any recovery could only come by way of identification and pursuit of the proceeds of fraud in accordance with Jamaica’s Proceeds of Crome Act… As such, the Financial Investigative Division, in its role as the Asset Recovery Agency under POCA, is empowered by law,” Clarke outlined.
However, civil proceedings, are open to aggrieved parties and can be started at any time.
Jean-Ann Panton, a former client relationship manager at SSL, is the only person who has so far been charged.
Olympic champion Usain Bolt is among several persons with accounts at SSL who have filed civil lawsuits against the investment firm.
Minister Clarke said the “orderly winding down” of SSL requires the transfer of the off-balance sheet assets.
SSL held approximately $30 billion of client assets as part of its off-balance sheet portfolio. Off-balance sheet items include assets that are not directly owned by the company, according to Clarke.
Clarke said that prior to April 11, the portfolio of international equity, fixed income, and other securities, held by SSL on behalf of clients, totalled approximately US$32.8 million.
He also said as at April 11 some 98 per cent of the international portfolio had been liquidated. He said once accounts have been reconciled, funds will be remitted directly to clients based on their instructions.
The Financial Services Commission took temporary management of SSL on January 17, 2023. It is currently in a court fight with SSL and its appointed trustee over who has legal control of the company.
In the meantime, Clarke said a landing page that consolidates all past and current updates and release will be available for viewing by the end of this week.
“As minister of finance and public service I will continue to keep the public informed, as and when required,” Clarke said.
